Shares of Zoom Video Communications (ZM -5.05%) jumped sharply on Monday. As of 1:55 p.m. EDT, the stock was up by about 6.5%.
Those gains were likely driven by a combination of an upbeat day in the overall market and outsize strength among growth stocks like Zoom.
Bullishness in the overall market on Monday had driven the S&P 500 up by 0.8% at the time of this writing. But many growth stocks were up by significantly larger percentages as traders kept betting on fast-growing technology companies during the pandemic.
Videoconferencing platform provider Zoom has impressed investors with its rapid growth during the pandemic. In its fiscal 2021 first quarter, which ended April 30, its revenue soared 169% year over year to $328.2 million due to a massive acceleration in the adoption of the Zoom platform around the world as people sheltered at home.
The stakes are high for Zoom this fiscal year. Management said it expects total revenue to land between $1.775 billion and $1.8 billion, up from just $623 million in its fiscal 2020.